Social Media Advertising Regulatory Frameworks & Compliance 2

Question 1

Under the FTC's endorsement guidelines, which scenario requires a disclosure even without direct payment?

Accepted Answer

An influencer who received free products to review

Answer

The FTC requires disclosure whenever there is a material connection, including receiving free products, regardless of whether cash was exchanged.

Question 2

Which U.S. law specifically regulates email marketing and sets requirements like opt-out mechanisms and accurate subject lines?

Accepted Answer

CAN-SPAM Act

Answer

The CAN-SPAM Act of 2003 governs commercial email in the U.S., requiring honest headers, opt-out options, and identification as advertising.

Question 3

A social media ad targets users aged 12–15 and collects their email addresses without parental consent. Which law is most directly violated?

Accepted Answer

COPPA

Answer

COPPA (Children's Online Privacy Protection Act) prohibits collecting personal information from children under 13 without verifiable parental consent.

Question 4

What does 'legitimate interest' mean under GDPR as a lawful basis for processing personal data in ad targeting?

Accepted Answer

Processing is necessary for the advertiser's genuine business purpose without overriding user rights

Answer

Legitimate interest allows data processing when it is necessary for a genuine business purpose that does not outweigh the individual's privacy rights.

Question 5

An advertiser uses a dark pattern to make opting out of data collection extremely difficult on a California-based site. Which regulation is most likely violated?

Accepted Answer

CCPA/CPRA

Answer

CCPA/CPRA explicitly prohibits the use of dark patterns that make it harder for California residents to exercise their privacy rights.

Social Media Advertising Practice Test

Social Media Advertising Practice Test

Social Media Advertising Regulatory Frameworks & Compliance 2